Bitcoin Halving: Will It Make Us Millionaires Or Is It Pure FOMO?

We are already entering May and with it, We enter the month of Bitcoin halving. The one that many label as the most important event of the year 2020 for cryptocurrencies and that they also relate it to the current rebound in market prices, has generated important debates on the web about whether or not it will really have an impact on the values ​​of Bitcoin and the rest of the cryptocurrencies. Google searches indicate that everyone is following the act, but, it is pertinent to answer, Are we going to the clouds or going down to hell like Dante?

Thinking about the color of the “Lambo”

Those who lived through the frenzy of late 2017 may remember the millionaire sentiment that was breathed in the crypto world. Geeks and cypherpunks that had started in Bitcoin years ago now had millions of dollars in their wallets. At that time the term “Lambo” appeared to refer to the Lamborghini, that famous sports car brand that many aspire to. The Bitcoiners, the new rich, joked about buying their “Lambo’s” and who could say no? They were rich!

However, a lot has changed since 2017. The market experienced a “crypto-winter” in 2018 and 2019 was the year of Libra and the CBDCs. The market is more mature, but We have not even come close to the highs of 2017 yet.

However, many analysts believe that This halving will be a reason for joy for all bitcoiners and their desire to buy “Lambo´s”.

PlanB, the popular Twitter analyst and who has been one of the main speakers of the Stock-to-Flow model, determined in his latest analysis that the halving of 2020 It would bring the price of Bitcoin to $ 288,000 per unit between the period of time 2020-2024.

With more precise data, PlanB justifies this assessment by determining that the total market value of Bitcoin for the same period will be $ 5.5 Billion (a much higher number than the $ 165 billion we have today).

Although, PlanB and its Stock-to-Flow model is not entirely well received and particularly the bassists are the ones who attack the projections of this anonymous social media analyst.

However, good projections are nothing more typical of PlanB. Other major industry players like Changpeng Zhao, the CEO of Binance, It is also quite positive for the effects that halving can have within the Bitcoin price.. Despite the fact that the Asian has repeatedly said that he does not dare to give a specific number, he stated that what comes after the halving will be the “logical” result of the law of supply-demand, where we will see an asset that its offer decreases and its offer remains.

Andreas Antonopoulos, in a recent interview with TechConCatalina, also gave his opinion about halving. Like CZ, the popular Bitcoiner is cautious and did not present an exact price for Bitcoin, although he did explain that Bitcoin price would rise within 2-3 months after halving. According to Antonopoulos, the reduction in supply through the decrease of the reward for miners would generate significant pressure for buyers, which would end with the price of Bitcoin going up.

Bassists also say

Not everything is rosy in the crypto community. Just as there are optimistic people, there are their black clouds that bet on a drop in the price of the main cryptocurrency in the market.

Joe007, one of the most recognized Bitfinex whales on the market and which has been characterized as a heavy bassist, has been one of the staunchest critics of the Stock-to-Flow model and its positive assessment for Bitcoin, repeatedly affirming that his analysis model is impractical, unscientific and generating erroneous conclusions.

He even recently said on Twitter that based on the model could be harmful to many of the traders that they think that the conclusions provided by their graphs are true and that they do not make their own investigations.

Selling S2F as if it had absolute predictive power is not only a “waste of time”, but it is dangerous for tens (Hundreds?) Of thousands of retail traders who don’t understand the statistics and substitute DYOR for varied guru dictations. Of course, you can always say “Fuck these idiots!” https://t.co/5p2r5b84ay

– ᴹᵁᴴ⁰⁰⁷ 🐳 (@ J0E007) April 6, 2020

Regarding halving, Joe007 gave his opinion in a satirical way when replying to a user on Twitter who asked him if he considered whether or not the event was already quoted at the price of Bitcoin. The whale sarcastically expressed that when the day comes, “everyone will finally realize how cheap BTC is“And that everyone will rush to buy it”In great quantities. With your unemployment checks“

Nooo, of course it is priceless. On the same day as the Great Halving, everyone will realize how cheap BTC is, and everyone will rush to buy it. In great quantities. With your unemployment checks. https://t.co/wAtitWuZbt

– ᴹᵁᴴ⁰⁰⁷ 🐳 (@ J0E007) April 26, 2020

Beyond Joe007’s acidity, other weighty investors have also given their opinion on what the halving will generate. Jason Williams, co-founder of Morgan Creek Digital and partner of crypto-influencer Anthony Pompliano, mentioned in December 2019 thatThe halving of Bitcoin would not generate any impact on the price and it would be a “non-event”. In the following days inclusive added that the event would not have any negative impact on the miners because “they are very smart and have already halved ahead“

What do we do with halving?

In conclusion, we must understand that regarding Bitcoin nothing is written. Although it is true that the halvings of 2012 and 2016 had an impact in the medium term on the valuation of the main cryptoactive in the market, the crisis due to the Coronavirus that we are currently experiencing they change all the rules of the game and it makes it very difficult to have an accurate prediction of what is going to happen.

The future and true fact that if we know is that upon reaching block 630,000 of the Bitcoin Blockchain, the reward for miners will decrease from 12.5 BTCs to 6.25 BTCs. There is no coronavirus, crisis, or authority that can change this.